All Forum Posts by: Kimberly Jones

I have done extremely well with airbnb in New Orleans but the new rules coming in to play on April 1 are going to completely squash my game. In order to continue renting out one side of a double I would have to have the homestead exemption. That means I would have to take the property out of the LLC and refinance it as owner occupied AND I would have to kick the long term tenant to the curb so that I could move in. I have no idea what the multitudes of investors are going to do, some are holding large amounts of properties that will be faced with having to shut down the strs. Many will not find the properties as desirable as regular rentals. It could have quite an impact on the market here. It is going to be interesting to see how it all plays out.

There are a number of lenders who will do the type of loan you seek. It sounds like you bought with cash and now need to rehab? You won't be able to go with a 30 year until the rehab is done BUT most of the lenders have a rehab program and a 30 year so that you can roll easily once the rehab is complete. The one problem you may have is the loan amount. Most have a minimum of $75k.

What is the actual ARV?

I have been watching new builds go up around St Claude in a matter of weeks, not months. I wish I could figure out how they manage to put together a crew that makes it look so easy. It must be magic!!

Is he looking for alternative funding sources for a specific reason? He could wrap them in a portfolio loan for less than 10%, depending on the circumstances.

That's Keith Naccari, he's a Broker and he is legit. I know the lender he uses for the 75% refi's, not sure about 100% (however 100% is not 100% if the borrower has to bring 20%). 

Not sure BP allows a post like this but I figure it's worth a shot. This man has been claiming to be "the King of Louisiana Real Estate" for years. All along he has been taking hard earned money from people, not only promising to put them in homes with no credit check, he also preys on newbies claiming that he will teach them how to wholesale.

http://www.wwltv.com/news/investigations/un-real-estate/322051737

@Mike Wood can lay the numbers out for you on new builds.

I was about to ask the same question @Braden Smith did.

@Stephen N. I am reaching back in the memory banks here, definitely open for correction if I misspeak. FEMA sets the BFE but they are not the ones that enforce it. It is up to the local municipalities to adopt and enforce. You would only be faced with paying extremely high flood premiums if you do not elevate, nobody will force you to raise the house UNTIL an event happens to cause more than 50% damage. I believe it is when you go for permits to repair that you will run into having to elevate.

As one who put many flooded and gutted properties back together after katrina I have one piece of advice....proceed with caution. This is not an arena for the faint of heart, nor is it for the inexperienced. Not only are the rehabs going to be even more of a pain in the *** than usual, the entire landscape ahead is unknown. Lenders are definitely going to get burned and they will be slow to lend again. Insurance will be required and it will be more costly, not just flood but also hazard. 

 The people in Louisiana ARE the most resilient that I have ever seen, however some are just plain tired. Because of the low likelihood of flooding a lot of people moved from NOLA to Baton Rouge after katrina. Now they have lost everything all over again and as much as they love Louisiana, they know in their hearts they can't take losing everything a 3rd time. I have actually heard the phrase "three strikes, you're out" uttered a few times over the past week. People will undoubtedly leave, but they will also come. BR is the capital and it is also the home of LSU. It will most assuredly NOT become a ghost town!! That said, it truly is going to take some time, as in years, for things to level out again.

Values are going to be skewed for quite a while. This is where inexperience could get you in a world of trouble and even being experienced can only help so much. The only thing you have to go on for values is in the past, and this is where I personally took hits after katrina. Some areas did not come back as quickly or as strong and projected values went out the window. The only thing that could have saved us from the losses we incurred on some of the properties would have been a crystal ball. 

For those that don't know, absolutely beyond a shadow of a doubt you can be required to raise houses that are on slabs. I assume there will be FEMA grants for that as there were here, but those grants are usually only good for the homeowners. You buy as an investor and you are on your own. Even if you have the cash in hand to raise the homes, good luck getting a shoring company to talk to you. They can make twice as much with the homeowners and the FEMA grants, they have no time for investors who expect cost to be based in reality.

If you have money that you can comfortably risk, and you have a firm grip on the rehabs, go for it. Rentals will be in demand. Do not plan on quick flips. Not only will lenders be slow to lend, people who may wish to buy are likely going to be running a lot lower in savings. Many wounds are going to have to heal before normalcy returns.